3 Stocks With Low Shiller Price-Earnings Ratios

Value investors could be interested in these companies

Summary
  • Comcast Corp, JPMorgan Chase & Co. and Kohl's Corp could be value opportunities.
  • Their Shiller price-earnings ratios are below the S&P 500 index's historical average.
  • The ratio is calculated as the last closing share price divided by the 10-year average inflation-adjusted earnings per share.
  • Wall Street is positive about these stocks.
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Picking stocks with compelling Shiller price-earnings ratios arguably increases the odds of discovering good value opportunities. Thus, investors may want to consider the following stocks since their Shiller price-earnings ratios are near or below the S&P 500 index's historical average of 16.95 as of the time of writing. The ratio is calculated as the last closing share price divided by the 10-year average inflation-adjusted earnings per share.

Comcast Corp

The first company investors may want to consider is Comcast Corp. (CMCSA, Financial), a Philadelphia-based global media and telecommunications company.

The company has a Shiller price-earnings ratio of 14.81, which is the result of a closing share price of $39.83 on Monday and 10-year average inflation-adjusted earnings per share of approximately $2.69 as of the March 2022 quarter. The industry has a median of 15.62 for the Shiller price-earnings ratio.

The share price has dropped by 29.55% over the past year for a market capitalization of $178.44 billion and a 52-week range of $37.56 to $61.80.

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GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 9 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $53.55 per share.

JPMorgan Chase & Co.

The second company investors may want to consider is JPMorgan Chase & Co. (JPM, Financial), a major U.S. bank.

The company has a Shiller price-earnings ratio of 12.96, which is the result of a closing share price of $116.38 on Monday and 10-year average inflation-adjusted earnings per share of about $8.98 as of the March 2022 quarter. The industry has a median Shiller price-earnings ratio of 11.47.

The share price has dropped by 24.50% over the past year for a market capitalization of $341.81 billion and a 52-week range of $111.48 to $172.96.

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GuruFocus has assigned a score of 4 out of 10 to the company's financial strength and 6 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $154.63 per share.

Kohl's Corp

The third company investors may want to consider is Kohl's Corp. (KSS, Financial), a Menomonee Falls, Wisconsin-based apparel, beauty and home products department store operator in the U.S.

The company has a Shiller price-earnings ratio of 8.41. The ratio is the result of a closing share price of $37.68 on Monday and 10-year average inflation-adjusted earnings per share of $4.48 as of the most recent fiscal quarter that ended on April 30. The industry has a median Shiller price-earnings ratio of 17.91.

The share price has fallen 30.57% over the past year, determining a market capitalization of $4.84 billion and a 52-week range of $34.64 to $64.37.

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GuruFocus has assigned a score of 5 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of hold with an average target price of approximately $50.54 per share.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure